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NEWS RELEASE
Contact:
Thomas Gunning
Corporate Secretary
Covista Communications, Inc.
Tel: (201) 599-6464
Fax: (201) 599-9017
E-mail: tgunning@covista.com
For Immediate Release
COVISTA COMMUNICATIONS, INC. ANNOUNCES DRAMATICALLY IMPROVED
OPERATING RESULTS FOR FISCAL YEAR ENDED JANUARY 31, 2004
CHATTANOOGA, TN - April 16, 2004 - Covista Communications, Inc. (NASDAQ symbol:
CVST) today announced results for its fiscal year ended January 31, 2004.
Revenues for the fiscal year were $84,056,000 as compared with revenues of
$100,960,000 for the prior fiscal year. Covista reported a net loss of $944,000
or $.05 per share for the fiscal year ended January 31, 2004, as compared with
a net loss of $9,407,000 or $.71 per share for the prior fiscal year. For the
fourth fiscal quarter ended January 31, 2004, revenues were $18,992,000 as
compared with revenues of $23,958,000 for the comparable quarter of the prior
fiscal year. Covista reported net income of $892,000 or $0.05 per share for the
quarter, compared with a net loss of $2,895,000 or $0.19 per share for the
comparable quarter of the prior fiscal year. Results for the fiscal year and
fourth quarter ended January 31, 2004 reflect the impact of the $2.675 million
insurance claim settlement.
John Leach Jr., Covista's President and Chief Executive Officer, in reviewing
the past year noted the Company's current business and prospects: "We are
extremely pleased with the positive strides we have made this past year. We have
continued to refine our marketing strategy to build a profitable base of
residential customers who purchase bundled telecom services. We have
successfully launched local services to consumers in several markets and have
proven that we can acquire and serve these customers successfully. The
excitement and momentum we have created should serve us well as we expand these
bundled service offerings in both existing and new markets in the coming year.
Additionally, we have continued to focus significant efforts towards achieving a
profitable enterprise and have demonstrated a remarkable improvement in our
operating results. This is the direct result of our dedicated hard working
employees who provide the best service in the industry to our loyal and growing
customer base. In the fourth quarter, we successfully settled a long-standing
insurance claim. As previously reported, that settlement related to the
September 11 terrorist attacks and provided the Company with additional cash of
$2.675 million. The funds from this claim will be used to continue to expand our
customer footprint."
Mr. Leach continued, "Looking forward to fiscal 2005, we plan to build on the
momentum we have created this past year. We will continue the expansion of our
local service footprint to additional
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markets in the Northeast and Mid-Atlantic regions as well as certain states in
the Southeast, monitor costs and stay current with new technologies, including
VOIP, as they become more viable."
About Covista:
Covista is a facilities-based provider of telecommunications services with a
substantial customer base principally the residential and small to medium sized
business. Its products and services include a broad range of voice, data and
Internet solutions, including long distance and toll-free services, local dial
tone and features, calling cards, frame relay, Internet access, VPN, directory
assistance and teleconferencing services. Covista currently owns and operates
switches in New York City, Philadelphia, Dallas, Chattanooga, and Minneapolis.
Covista operates Network Operation; call center and information technology
facilities in Chattanooga to monitor its switched network and to coordinate its
various services. For information on becoming a Covista customer, please
telephone 800-805-1000 or visit the Company's website at www.covista.com.
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FISCAL YEAR ENDED JANUARY 31
We are providing the following consolidated summary of operations for the fiscal
year ended January 31, 2004 and 2003 (Amounts and number of shares in thousands
except per share data):
2004 2003
--------- ---------
Revenue $ 84,056 $ 100,960
Cost and Expenses 84,673 110,127
Operating Loss (616) (9,167)
Other Income (Expense) (328) (752)
Loss before
income taxes (944) (9,919)
Income tax refund -- 512
--------- ---------
Net Loss $ (944) $ (9,407)
========= =========
Basic loss per common share $ (0.05) $ (0.71)
Diluted loss per common share $ (0.05) $ (0.71)
Average Number of Shares
Basic 17,796 13,283
Diluted 17,796 13,283
QUARTER ENDED JANUARY 31
2004 2003
--------- ---------
Revenue $ 18,992 $ 23,598
Cost and Expenses 18,006 26,058
Operating Income (Loss) 986 (2,460)
Other Income (Expense) (94) (435)
-------- --------
Net Income (Loss) $ 892 $ (2,895)
======== ========
Basic earning (loss) per common share $ 0.05 $ (0.19)
Diluted earnings (loss) per common share $ 0.05 $ (0.19)
Average Number of Shares
Basic 17,789 15,238
Diluted 18,569 15,238
Note: Results for the year ended and quarter ended January 31, 2004
include a $2.675 million benefit resulting from the settlement of
an insuance claim related to the September 11, 2001 terrorist
attacks.
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Information relating to forward-looking statements:
This press release contains historical and forward-looking statements made
pursuant to the safe harbor provisions of the private securities litigation act
of 1995. Investors are cautioned that forward-looking statements such as
statements of the company's plans, objectives, expectations and intentions
involve risks and uncertainties. The cautionary statements made in this release
should be read as being applicable to all related statements wherever they
appear. Statements containing terms such as "believes," "expects," "plans,"
"projects," "intends," "estimates," "anticipates," or similar terms, are
considered to contain uncertainty and are forward-looking statements. The actual
results could differ materially from those discussed. Factors that could
contribute to such differences include: changes in market conditions and
increased competition from other telecommunications and internet service
providers; government regulations; the volatile and competitive environment for
internet telephony; advances in competitive products or technologies that could
reduce demand for services; availability of transmission facilities; management
of rapid growth; customer concentration and attrition; the ability to
successfully integrate acquired companies; the ability to successfully develop
and bring new services to market; inaccurate or incomplete assumptions on the
part of management; and other risks discussed in the company's SEC filings,
including form 10-k and form 10-q, which can be accessed at the SEC web site at
www.sec.gov.
Readers of this release should understand that it is not possible to predict or
identify all such risk factors. Consequently, this list should not be considered
a complete statement of all potential risks or uncertainties. Covista does not
assume the obligation to update any forward-looking statement, except as is
required by applicable law.
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